The Canadian Dollar, familiarly known as the Loonie, firmed against the greenback late on Thursday and extended earlier gains after the Bank of Canada’s announcement yesterday that it had raised the benchmark lending rate. Analysts are still debating whether the BOC will pencil in another rate hike this year with that likelihood now priced in at 65%. The last time the BOC raised rates was in 2010, and it is only the latest to join the growing list of central banks with a hawkish intent.
As reported at 11:08 am (JST) in Tokyo, the USD/CAD was trading at C$1.27, up 0.01%; the pair had earlier hit a peak of C$1.27375. The EUR/CAD is essentially flat at C$1.45189. The CAD/JPY is trading at 89.14130 Japanese Yen, a gain of 0.16%.
Dollar Bulls Still Hopeful
In the United States, the Dollar is making some headway against its major rivals and recouping yesterday’s losses. Data helped push the greenback higher on news that producer prices were unexpectedly higher last month while unemployment benefit filings fell last week. That news kept hopes alive for a third rate hike from the Federal Reserve, despite Janet Yellen’s unexpectedly dovish stance in her testimony to the US Congress. The USD/JPY pair is trading higher at 113.48 Yen, up 0.17%; the GBP/USD is trading at $1.2939, down 0.02%.